For house-hunting Americans, the supply is limited.
Due to a tight housing market for existing homes, the demand for new home construction is growing as homebuyers seek more options.
But which cities have the most new home construction in 2023?
To get a better sense of the current market for new homes, we analyzed building permit data for new residential construction from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).
Our analysis looked at the number of building permits for privately‐owned housing units in more than 200 of the largest metropolitan areas across the country.
Key findings
- With 23,062 new residential home permits issued this year, the Houston metropolitan area tops the list.
- Along with Houston, several other Texas metro areas rank within the top 20, including Dallas-Fort Worth (No. 2); Austin (No. 7), and San Antonio (No. 18).
- The number of permits for new home construction is down 21.1 percent year-over-year.
- Kansas City, Milwaukee, and Honolulu have seen the largest year-over-year declines in new home construction permits. Meanwhile, Miami, Louisville, and Tampa have seen the largest increases.
Which cities have the most new home construction in 2023?
Compared to this time last year, the number of permits for new home construction is down 21.1 percent, according to the Census Bureau and HUD.
But even though new home construction is down nationwide year-over-year, metro areas such as Houston, Dallas-Fort Worth, New York City, Phoenix and Atlanta are home to the most new home construction in 2023.
In Houston, more than 23,000 permits for new homes have been issued this year, while Dallas has seen more than 20,000. Both of these cities have been averaging more than 5,000 new home construction permits per month.
These new home construction permits represent both single-family homes and multi-unit residential homes such as apartment complexes and condominiums. Houston ranks No. 1 for new single-family home construction with 15,391 homes, while New York City tops the list for multi-unit residential homes with 10,155.
Top five cities with the most new home construction
#1. Houston, TX
- Average monthly new home permits in 2023: 5,766
- New single-family homes: 15,391
- Multi-unit residential homes: 7,671
- Total new homes in 2023: 23,062
#2. Dallas-Fort Worth, TX
- Average monthly new home permits in 2023: 5,156
- New single-family homes: 12,738
- Multi-unit residential homes: 7,887
- Total new homes in 2023: 20,625
#3. New York, NY
- Average monthly new home permits in 2023: 3,552
- New single-family homes: 4,053
- Multi-unit residential homes: 10,155
- Total new homes in 2023: 14,208
#4. Phoenix, AZ
- Average monthly new home permits in 2023: 3,459
- New single-family homes: 6,597
- Multi-unit residential homes: 7,238
- Total new homes in 2023: 13,835
#5. Atlanta, GA
- Average monthly new home permits in 2023: 3,294
- New single-family homes: 7,385
- Multi-unit residential homes: 5,790
- Total new homes in 2023: 13,175
Largest declines in new home construction
Numerous factors such as limited inventory in the existing home market, high mortgage rates, and supply chain issues have created a bottleneck for new home construction.
Several cities across the country have experienced larger declines in new home construction compared to others. For example, permits for new homes in the Kansas City metro area are down two-thirds (66.1%) year-over-year.
Elsewhere, new home permits in the Milwaukee metro area are down 50.6%, while Honolulu has also seen a 50% drop compared to this time last year.
Among the 56 largest metro areas in the country with a population of one million or more, only nine have seen a year-over-year increase, including Miami (35.5%); Louisville (20.5%); Tampa (17.5%); Portland (14.2%), Cincinnati (12.8%); Riverside (9.7%); Nashville (6.8%); Baltimore (5.8%) and Grand Rapids (1.3%)
It remains to be seen whether new home construction will catch up with the current demand, but it’s clear that some cities are experiencing a building boom when it comes to new homes.
Methodology
To determine our ranking, we analyzed new home construction permits across 225 metropolitan areas via data from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). Metro areas were ranked based on the total number of permits for privately-owned residential housing units in 2023. These units include both single-family homes as well as multi-unit residential units such as apartments and condominiums. Data for this study includes new home construction permits issued from January through April 2023, which is the most recent data available as of June 1, 2023.
Sources: U.S. Census Bureau, Department of Housing and Urban Development
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